Top Ten Ways To Save On Your Mortgage

Top Ten Ways To Save On Your Mortgage

1. Find The Best Deal – By shopping around and getting several quotes from the various lenders you will be able to find the best deal for your circumstances.

2. Save up for the place – If you pay a larger place, for example 20%, there won’t be as much interest and you could possibly qualify for a lower interest rate. Plus you won’t require mortgage insurance.

3. Don’t pay any unneeded interest – Pay your mortgage fees and charges upfront it’s cheaper than adding them on to your loan.

4. Make repayments more frequently – If you pay fortnightly or already weekly you will be making approximately one additional monthly payment per year and the time it takes to pay off your loan will be reduced considerably.

5. Don’t just pay the minimum – If you want to save thousands of dollars in interest over the term of your loan work out the maximum monthly payment you can manage. Also consider taking out your mortgage for the shortest term possible, preferably under twenty years.

6. Make additional payments – Another way you can reduce the length of your mortgage and the amount of interest you pay is by making additional payments against the principal balance. Make sure your lender is set up for this option.

7. Use low interest rates to your advantage – If you make additional payments when interest rates are low and you have a little additional in the kitty this will help pay off your mortgage early. Please observe that this is only applicable if you are on a variable rate mortgage.

8. Use an offset loan – By depositing your wages directly into your mortgage account and only withdrawing the minimum you need to live on will help cut the time it takes to pay out your loan.

9. Consolidate credit cards and other loans – Take advantage of the lower interest rate of your mortgage by consolidating any personal loans and credit cards into your mortgage account.

10. Check out mortgage watchdog software – I’ll let you in on a little secret … edges make mistakes and rarely are these in your favour. Recently a major Australian bank found they had overcharged fees on 55,000 customer’s accounts and it totaled $52,000,000. It has also been estimated that the average error is about $242 per monthly statement. Mortgage Watchdog is a simple and powerful software program that will check your bank statements for these errors. It’s quick, easy and most importantly 100% accurate.

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